2 George Osborne debates involving the Wales Office

Oral Answers to Questions

George Osborne Excerpts
Wednesday 25th May 2016

(8 years, 6 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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We now come to questions to the Prime Minister.

John Bercow Portrait Mr Speaker
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Order. The right hon. Gentleman is a bit ahead of himself. There is a process to be followed. He can wait his turn.

Maria Caulfield Portrait Maria Caulfield (Lewes) (Con)
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Q1. If he will list his official engagements for Wednesday 25 May.

George Osborne Portrait The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)
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Thank you very much, Mr Speaker—as always. The Prime Minister is attending the G7 in Japan, and I have been asked to reply on his behalf. This morning I had meetings with ministerial colleagues and others, and in addition to my duties in this House, I will have further such meetings later today.

Maria Caulfield Portrait Maria Caulfield
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I am sure Labour Members will disagree, but the first priority of any Government has to be the defence and security of our country, so will the Chancellor outline the steps this Government are taking to replace our Trident nuclear deterrent?

George Osborne Portrait Mr Osborne
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My hon. Friend is absolutely right. The first duty of the Government is to defend the country. For almost 70 years our independent nuclear deterrent has provided the ultimate insurance for our freedom. We will review our Trident deterrent, and bring forward votes in this House; we ask MPs from all sides of the House to support this vital commitment to our national security. When she stands up, the hon. Member for Wallasey (Ms Eagle), representing the Labour party, should indicate that support today.

Angela Eagle Portrait Ms Angela Eagle (Wallasey) (Lab)
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We look forward to the vote on Trident—he should get on with it.

Given the overnight news of the French authorities’ dawn raid on Google, investigating allegations of aggravated financial fraud and money laundering, does the Chancellor now regret calling his cosy little tax deal with the same company “good news” for the British taxpayer?

George Osborne Portrait Mr Osborne
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It is good news that we are collecting money in tax from companies that paid no tax when the Labour party was in office. The hon. Lady seems to forget that she was the Exchequer Secretary in the last Labour Government; perhaps she can tell us whether she ever raised the tax affairs of Google with the Inland Revenue at the time.

Angela Eagle Portrait Ms Eagle
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Obviously, the Chancellor has done a bit more research this time. I regard that as a compliment.

From that answer, I think the Chancellor is far too easily satisfied with his cosy little tax deal. I note that even the hon. Member for Uxbridge and South Ruislip (Boris Johnson) labelled that deal “derisory”. The British public think it is even worse. Despite all the rhetoric, on the Chancellor’s watch the tax gap has gone up, and his tax deal with the Swiss raised a fraction of the revenue that he boasted it would. The Office for Budget Responsibility has blamed the lack of resources in Her Majesty’s Revenue and Customs, so why has he sacked 11,000 tax staff since 2010, and when is he going to give HMRC the resources it needs to do a proper job?

George Osborne Portrait Mr Osborne
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We increased resources for HMRC to tackle tax evasion and avoidance. We have introduced a diverted profits tax so that companies such as Google cannot shift their profits offshore anymore, and have made sure that banks pay a higher tax charge than they ever did under the last Labour Government. I come back to this question. The hon. Lady was a Treasury Minister. She stood at this Dispatch Box. She is asking me what we have done to tackle tax evasion and avoidance. When she was Exchequer Secretary, did she ever raise the tax affairs of Google? We should know that before she asks questions of this Government. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. Members must calm themselves, and remain calm. Members on both sides should take their lead from the right hon. and learned Member for Rushcliffe (Mr Clarke), who always sits calmly and in a statesmanlike manner. That is the way to behave.

Angela Eagle Portrait Ms Eagle
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We all have a great deal of respect for the right hon. and learned Member for Rushcliffe (Mr Clarke). The Chancellor of the Exchequer will know that the Exchequer Secretary deals with taxes on vices, not on Google. I did my job in taxing vices when I was in the Treasury. The Chancellor will be judged on results. He has been in office for six years. Given that France is demanding 10 times more from Google than he is, the public will make their own judgment.

Labour is campaigning to ensure that the UK remains in the European Union because that is the best way to defend rights at work as well as jobs and prosperity, but the Conservative party is split right down the middle and is descending into vicious acrimony. Last week the Minister of State for Employment called for Brexit, so that there could be a bonfire of workers’ rights. Does the Chancellor agree with her, or does he agree with Len McCluskey that a vote to stay in the European Union is the best deal for Britain’s workers?

George Osborne Portrait Mr Osborne
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First, the hon. Lady has confirmed that when she was in the Treasury she asked absolutely no questions about the tax affairs of Google. As she knows—we agree on this—I think it is better that Britain remains in the European Union, so why not now have some consensus on other issues, such as an independent nuclear deterrent? Let us have a consensus on that, and on supporting, rather than disparaging, businesses. Let us have a consensus on not piling debts on the next generation, but on dealing with our deficit, and a consensus that the parties in this House should have a credible economic policy.

Angela Eagle Portrait Ms Eagle
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I think the Chancellor has just agreed with Len McCluskey.

The former Work and Pensions Secretary said this week that the Chancellor’s Brexit report should not be believed by anyone, and he branded the Chancellor “Pinocchio”, with his nose just getting longer and longer with every fib. Meanwhile, the general secretary of the TUC said that the Treasury report gives us

“half a million good reasons to stay in the European Union”.

Who does the Chancellor think that the public should listen to? His former Cabinet colleague, or the leader of Britain’s millions of trade unionists?

George Osborne Portrait Mr Osborne
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It is no great revelation that different Conservative MPs have different views on the European Union. That is why we are having a referendum, because this issue divides parties, families and friends, and we made a commitment in our manifesto that the British people would decide this question. If the hon. Lady wants to talk about divisions in parties, I observe that while she is sitting here, the leader of the Labour party is sitting at home, wondering whether to impeach the former leader of the Labour party for war crimes.

Angela Eagle Portrait Ms Eagle
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I am glad that the Chancellor agrees with Frances O’Grady, but it is a pity that he cannot get half his Back Benchers, and most of his own party, to agree with him. Given that the former Work and Pensions Secretary has just called the Prime Minister “disingenuous”, and that the former Tory Mayor of London has called him “demented”, I would not talk about Labour splits. The Chancellor should get his own House in order before he talks about us.

Following the Chancellor’s second omnishambles Budget earlier this year, I see that his approval ratings have collapsed by 80 points among his own party. Given that he seems to be following a similar career path, is it time that he turned to Michael Portillo for advice? [Interruption.]

Angela Eagle Portrait Ms Eagle
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Thank you, Mr Speaker. Last week, the former would-be leader, Michael Portillo, said of the Queen’s Speech:

“After 23 years of careful thought about what they would like to do in power, and the answer is nothing…There is nothing they want to do with office or power…The government has nothing to do, nothing to say and thinks nothing.”

Even this “nothing” Queen’s Speech has caused a revolt on the Chancellor’s Back Benches, and forced yet another U-turn to avoid the first defeat of a Government on their legislative programme for 92 years. Does that tell us all we need to know about this Prime Minister and Chancellor? It seems that they cannot even get their Back Benchers to vote for nothing without a fight.

George Osborne Portrait Mr Osborne
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I will tell the hon. Lady what we have done in recent weeks: we have taken another million people out of tax; we have frozen fuel duty; we have cut business rates for small businesses; we have seen the deficit fall by another £16 billion; we have delivered a record number of jobs; and we have introduced a national living wage. That is what we have been up to. What has Labour been up to? She talks about U-turns. They have turned the Labour party from a party that gave Britain its nuclear deterrent to a party that wants to scrap it; from a party that created the academies programme but now wants to abolish all academies; and from a party that once courted business but now disparages it—the prawn cocktail offensive is just plain offensive these days. As a result, it has gone from a Labour party that won elections to a Labour party that is going to go on losing elections.

Angela Eagle Portrait Ms Eagle
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With 29 days to go until the most important decision this country has faced in a generation, we have before us a Government in utter chaos—split down the middle and at war with themselves. The stakes could not be higher, yet the Government are adrift at the mercy of their own rebel Back Benchers, unable to get their agenda through Parliament. Instead of providing the leadership the country needs, they are fighting a bitter proxy war over the leadership of their own party. I notice there is no “outer” here: all the Brexiteers have been banished from the Government Front Bench. [Interruption.] It is nice to see the Justice Secretary here. I think the Chancellor has put the rest of his Brexit colleagues in detention. Instead of providing the leadership the country needs, they are fighting a bitter proxy war over the leadership of their own party. Instead of focusing on the national interest, they are focusing on narrow self-interest. What we need is a Government who will do the best for Britain. What we have got is a Conservative party focused only on itself.

George Osborne Portrait Mr Osborne
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The hon. Lady talks about our parliamentary party. Let us look at her parliamentary party. They are like rats deserting a sinking ship. A shadow Health Minister wants to be the Mayor of Liverpool, the hon. Member for Bury South (Mr Lewis) wants to the Mayor of Manchester, and the shadow Home Secretary wants to be the Mayor of both cities. When we said we were creating job opportunities we did not mean job opportunities for the whole shadow Cabinet. They are like a parliamentary party on day release when the hon. Lady is here, but they know the right hon. Member for Islington North (Jeremy Corbyn) will be back and it is four more years of hard labour.

Today, we are voting on a Queen’s Speech that delivers economic security, protects our national security and enhances life chances for the most disadvantaged. It does not matter who stands at the Dispatch Box for Labour these days. They are dismantling our defences, they are wrecking our economy and they want to burden people with debt. In their own report published this week, “Labour’s Future”—surprisingly long—they say they are becoming increasingly irrelevant to the working people of Britain.

Richard Drax Portrait Richard Drax (South Dorset) (Con)
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Q5. What a privilege it is to be called by you, Mr Speaker. If the remain team have their day on 24 June, I shall have to apply by email to Herr Juncker to ask a question. Airbus is a wonderful example of European co-operation —European, not EU—with fuselages built in France and Germany and wings built in this country. Planes cannot fly without wings. Our remaining inside or outside the EU will have no effect on this business, for, as the Chancellor knows, it is trade and the hard work of businessmen and businesswomen that creates jobs and prosperity, not politicians and bureaucrats. It is their job to nurture growth and enterprise—[Interruption.]

Richard Drax Portrait Richard Drax
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Does my right hon. Friend agree that it is their job to nurture and not to make threats to business, enterprise, jobs and aspiration?

George Osborne Portrait Mr Osborne
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I completely agree with my hon. Friend that jobs and enterprise are created through the ingenuity of private businesses that we in the House should support and nurture.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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Lachlan Brain is seven years old and attends the Gaelic medium primary school in Dingwall in the Scottish highlands. Next week, the Home Office—I see the Home Secretary briefing the Chancellor—plans to deport him and his family, despite the fact that he arrived as part of a Scottish Government initiative backed by the Home Office to attract people to live and work in the region. The case has been front-page news in Scotland and raised repeatedly in the House. What does he have to say to the Brain family and the community, which wants them to stay?

George Osborne Portrait Mr Osborne
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As I understand it, the family do not meet the immigration criteria, but the Home Secretary says she is very happy to write to the right hon. Gentleman on the details of the case.

Angus Robertson Portrait Angus Robertson
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I am sorry but this has been going on for weeks and that answer frankly is not good enough. Appeals have been made to the Home Secretary by the Scottish First Minister, the local MP, the local Member of the Scottish Parliament and the community, and it is wall to wall across the media of Scotland, yet the Chancellor of the Exchequer clearly knew nothing about it. The problem in the highlands of Scotland is not immigration but emigration. Even at this late stage, will the Chancellor, who knows nothing about it, speak to the Home Secretary and Prime Minister and get this sorted out?

George Osborne Portrait Mr Osborne
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As I said, the Home Secretary will write to the right hon. Gentleman with the details of the case, but may I make a suggestion to the Scottish National party? It now has substantial tax and enterprise powers, so if it wants to attract people to the highlands of Scotland, why does it not create an entrepreneurial Scotland that people want to move to from the rest of the UK in order to grow a business and have a successful life?

Philip Davies Portrait Philip Davies (Shipley) (Con)
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Q6. Why is the Chilcot report not being published before the EU referendum? Is it because the Prime Minister and the Chancellor do not want the public reminded, ahead of the EU referendum, of how the Government of the day and the establishment are prepared to produce dodgy dossiers, make things up and distort the facts to con the public into supporting something they otherwise would not?

George Osborne Portrait Mr Osborne
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No, it is because it is an independent report and the inquiry team decides when to produce it.

Stephen Pound Portrait Stephen Pound (Ealing North) (Lab)
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Q2. In the spirit of consensus, may I say that few things unite the House more than a concentration on the periodic reviews of the Boundary Commission, which are studied with fierce intensity and result in covetous eyes occasionally being cast on neighbouring constituencies? We note, however, that the electorates of the Royal Borough of Kensington and Chelsea and the City of Westminster have declined precipitously and against all logic. Does the Chancellor believe that the Prime Minister should be concerned about this? If so, what should he be doing?

George Osborne Portrait Mr Osborne
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I thought the hon. Gentleman was the Member of Parliament for Ealing North. The Boundary Commission is doing its work and drawing up boundaries independently—that is a good thing about our country—and we will see its initial proposals later this year, I think.

Nusrat Ghani Portrait Nusrat Ghani (Wealden) (Con)
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Q11. Will the Chancellor join me in congratulating Barnardo’s, the UK’s oldest and largest children’s charity, which this year celebrates 150 years of supporting and protecting vulnerable children? Does he agree that young people need support beyond the age of 18 to maximise their life chances and that the Government’s new care leavers covenant, which extends the duty of care to 25, is therefore a fitting way to build on Barnardo’s proud history of giving young people the best opportunities in life?

George Osborne Portrait Mr Osborne
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I certainly agree with my hon. Friend that Barnardo’s is a brilliant charity and that we should all congratulate it on the work it does. We have a huge responsibility to people who are in the care of the state, which does not end when they are 18 years old. That is why we are announcing new measures in the Queen’s Speech to include support from a personal adviser, for example, until these people are 25 and to make sure that other bodies such as local authorities have a care for those people, bringing all the opportunities to their attention. This is part of the life chances strategy, which lies at the heart of this Queen’s Speech.

Tom Blenkinsop Portrait Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
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Q3. The Chancellor wanted a march of the makers, and today hundreds of steelworkers are marching to Parliament for their future and for their communities. Why do the Government back China’s bid for market economy status against the interests of British steelworkers? Why does this Chancellor block changes to the lesser duty tariff against the interests of British steelworkers? When will he set down an industrial strategy to put British steelworkers’ interests ahead of his own?

George Osborne Portrait Mr Osborne
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Our thoughts are, of course, with the steelmakers and their families at this very difficult time. [Interruption.] If we take a step back, we can all acknowledge that there is a global crisis in the steel industry, with tens of thousands of jobs lost across Europe alone and many tens of thousands beyond that. We are taking specific action today to help Tata, Port Talbot and related works across the country. My right hon. Friend the Business Secretary has been to India with the First Minister of Wales in a cross-party effort. Nationally, we have taken action to reduce energy charges on energy-intensive industries; we have taken action to ensure that there is more flexibility with emission regulations; we are doing everything we can to help this industry at a very difficult time, including making sure that there are tough tariffs on Chinese dumping. As a result of the tariffs introduced on rebar steel, those imports are down by over 90%.

Andrew Griffiths Portrait Andrew Griffiths (Burton) (Con)
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Q12. Will the Chancellor confirm reports in the press today that former Labour Minister, Lord Sugar has joined the Government as our new enterprise tsar? Does he agree that this is a sign of people abandoning Labour for the prosperity, security and jobs offered by this Government? Will the Chancellor finally confirm that he has no new plans for a sugar tax?

George Osborne Portrait Mr Osborne
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I can confirm that we have hired Lord Sugar to advise on enterprise. He will bring his knowledge and expertise to that task. Apparently, Lord Sugar has told the Labour party, “You’re fired.”

Cat Smith Portrait Cat Smith (Lancaster and Fleetwood) (Lab)
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Q4. I have a 14-year-old autistic constituent, who got on very well at primary school, but since moving to secondary school, its uncompromising one-size-fits-all approach has left him with a special school as his only option. What will the Chancellor do to make sure that when the independent expert group looking at initial teacher training reports back, Ministers will ensure that specific autism training forms part of their curriculum?

George Osborne Portrait Mr Osborne
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The hon. Lady raises an important issue, and I think she will receive a lot of sympathy from colleagues of all parties. The Education Secretary shares her concern and has personally raised the issue with the chair of the initial teacher training review, Stephen Munday. My right hon. Friend has stressed the importance of ensuring that teachers are properly trained to support young people with special educational needs and specifically autism. As a result, the chairman will include recommendations in the report on how core teacher training should cover special educational needs. The report will be published shortly.

Jason McCartney Portrait Jason McCartney (Colne Valley) (Con)
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Q15. My local clinical commissioning group is currently consulting on its appalling plans to downgrade A&E at Huddersfield Royal Infirmary. Does the Chancellor agree with me and with thousands of “Hands Off HRI” campaigners, led by Karl Deitch, that all options should remain on the table and that a plan B must come forward to keep good-quality local health services?

George Osborne Portrait Mr Osborne
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My hon. Friend is a strong champion of his local area, and we all know that Huddersfield Royal Infirmary has been struggling with the private finance initiative contract that it signed under the last Labour Government. Any service changes must be made by the local NHS, and must be based on clear evidence that they will deliver better outcomes for patients. It is right for these decisions to be made by local clinicians rather than by politicians, but they must meet the four key tests that have been set out: they must demonstrate public and patient engagement, have the support of GP commissioners, be based on clinical evidence, and take account of patient choice. I expect the local NHS to consider all those options in reaching any decision.

Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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Q7. The House of Commons Library estimates that 4.9 million UK citizens live or work in other countries, yet in my surgeries, week in, week out, I meet constituents from overseas who cannot obtain visas, residency or citizenship here. The whole of Scotland is outraged at the threat of deportation facing the Brain family. What, in the Chancellor’s view, is the difference between an economic migrant and an expat?

George Osborne Portrait Mr Osborne
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I think all the hon. Gentleman is demonstrating is that we do have border controls in this country, and that we do have immigration rules that need to be complied with. That is a very important aspect of the European Union’s Schengen area agreement, which we are not part of, and I think that it is part of the special status that we have in the European Union.

Anne-Marie Trevelyan Portrait Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
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Will the Chancellor join me in welcoming the crew of HMS Duncan—the last and best of our Type 45 destroyers, which is currently moored in London for the commemorations of the battle of Jutland—some of whom are watching from the Gallery today? Will he also support the work that is being done by the all-party parliamentary group on the armed forces covenant to ensure that all our armed forces and their families have the very best housing that we can offer them?

George Osborne Portrait Mr Osborne
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I certainly join my hon. Friend in welcoming the crew of HMS Duncan, and in celebrating all that they do on behalf of this country to keep us safe and to represent Britain around the world. In return, we owe them a duty of care, and the armed forces covenant enshrines that duty. No such covenant existed before we came into Downing Street, and now that we are in Downing Street we are honouring our promises to Britain’s armed services and to the Royal Navy.

Julie Elliott Portrait Julie Elliott (Sunderland Central) (Lab)
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Q8. Not content with just trebling tuition fees, the Government want to raise them even higher. Why has the Chancellor changed his view since 2003, when he said that tuition fees were a tax on learning?

George Osborne Portrait Mr Osborne
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Back then, the Labour party was voting for tuition fees. The difference is this: we have learnt our lesson, and Labour Members have forgotten theirs. As a result, we have a credible higher education policy that is giving us the best universities in the world, a record number of students, and, crucially, a record number of students from disadvantaged backgrounds—which the Labour party said would never happen—and, in contrast, Labour Members have a completely incredible policy to abolish the tuition fees that they themselves introduced and create a £10 billion hole in the public finances. It is time that they were straight with students and made it clear that that is completely unaffordable, and that we go on funding our higher education system and asking graduates who are going to earn more, on average, than other taxpayers to contribute to their education.

Anne Main Portrait Mrs Anne Main (St Albans) (Con)
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St Albans and many other areas in the south and east value their green belt. According to figures from the Office for National Statistics, 3 million people may come into this country if we remain in the European Union. Would the Chancellor like to suggest which bits of the green belt—about a quarter of a million acres—will be needed, and where they will be? We need to provide homes and infrastructure for those people.

George Osborne Portrait Mr Osborne
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We have made a clear commitment to protecting the green belt, and the planning laws that we have introduced, and propose to introduce, meet that commitment.

My hon. Friend and I disagree on European Union membership—and I have seen no particular evidence from the leave campaigners that immigration would fall; indeed, they seem to be telling some communities that they would let more people in—but let us at least agree on this. We will have a referendum, and, in the end, it will not be up to my hon. Friend or me to decide. It will be up to the British people.

Judith Cummins Portrait Judith Cummins (Bradford South) (Lab)
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Q9. No one should underestimate public support for the BBC. In the last week, more than 200,000 people have signed a petition about the removal of the recipes website. The Government may have been forced to pull back from some of their more extreme proposals, but there is still plenty to cause concern. Will the Chancellor agree to hold a debate and a vote on the Floor of the House, so that Members of Parliament can provide the parliamentary scrutiny that the charter renewal properly deserves?

George Osborne Portrait Mr Osborne
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We want a great BBC—a great public broadcaster—and we have agreed a deal with the BBC that it has welcomed. The specific issue that the hon. Lady raises was an operational decision by the BBC, not a decision taken by members of the Government. I have made the observation that we have a great national public broadcaster in the BBC but we do not want a great public newspaper in the form of the BBC. As newspapers increasingly move online, the BBC—as it has itself acknowledged—wants to be careful about what information it has on its website, so that we can also have a flourishing private press. I think that the BBC has got that balance right.

William Cash Portrait Sir William Cash (Stone) (Con)
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Will the Chancellor explain why the House of Commons Library and ONS figures for 2015 clearly show that although we export 44% of our goods and services within the single market, we run a disastrous loss or deficit on those exports of £68 billion per annum, up £9 billion since last year alone, in relation to the other 27 member states, whereas Germany runs a profit or surplus of a massive £82 billion in relation to those same 27 states? Is not that a bad deal?

George Osborne Portrait Mr Osborne
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We are a massive exporter of services; our services represent 80% of the British economy. We are home to one of the most successful car industries in Europe, and we export cars to the continent. We are also home to the world’s second largest aerospace industry and part of a European supply chain. That is why those leading businesses are in favour of our membership of the European Union. My hon. Friend and I disagree on this issue, but we stood together on a manifesto to have a referendum and to let the British people decide.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
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Q10. Headteachers and NHS and private sector employers in my constituency are telling me that they have few if any qualified applicants for a range of skilled roles, and that too many experienced staff are leaving. The single most common reason for this key worker crisis is the cost of rental and purchased housing in west London, which the Government’s housing policies will not address. Even the subsidies to buy—

Ruth Cadbury Portrait Ruth Cadbury
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Will the Chancellor acknowledge this recruitment and retention crisis and do something about it?

George Osborne Portrait Mr Osborne
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Of course, we have 25,000 more clinically trained staff in our national health service, but I completely agree with the hon. Lady that there is a challenge of housing in London. I met the new Mayor of London, Sadiq Khan, earlier this week and we are going to see where we can agree on policies that will help to address that issue.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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In my right hon. Friend’s enthusiasm to bludgeon the British voter into supporting a European Union that they do not really like, how can he justify planning to break the law? Is he aware that the Public Administration Committee has now published three legal opinions from Speaker’s Counsel—[Interruption.]

Bernard Jenkin Portrait Mr Jenkin
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Is my right hon. Friend aware that the Public Administration Committee has now published three legal opinions from Speaker’s Counsel that make it perfectly clear that it is illegal for the Government to keep their pro-EU propaganda up on Government websites during the purdah period?

George Osborne Portrait Mr Osborne
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Of course the Government will comply with the law and the Government websites will comply with the purdah rules. We are confident that they do so. May I make a general observation? My hon. Friend and I have fought for this referendum and it is now taking place. There are huge issues at stake about Britain’s economy, Britain’s security and Britain’s place in the world, and we have perfectly honourable disagreements on those big issues. Let us debate the substance rather than the process, so that the British people can feel that they have had a range of opinions and can make their own minds up.

Baroness Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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Q13. The care sector faces a crisis made worse by the Chancellor’s failure to fund increases in the minimum wage properly. The 2% social care precept does not cover all the costs, so the Local Government Association asked the Chancellor to bring forward £700 million of better care funding from 2019 to this year and next year to help with the increased costs. Will the Chancellor listen to local councils and will he fund his own minimum wage policy?

George Osborne Portrait Mr Osborne
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Of course, we always listen to local authorities and are in dialogue with them, but we have given them the power, which many have used, to apply a social care precept, which came in in April in many areas. At the same time, we have put more money into the better care fund, and we are therefore confident that social care is funded. However, I agree with the hon. Lady that more needs to be done to help the social care sector, and the key thing here will be integration with the national health service over coming years so that the service is much more seamless for our citizens.

Lord Garnier Portrait Sir Edward Garnier (Harborough) (Con)
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At the Conservative party conference last year, our right hon. Friend the Prime Minister said that the future that we, the state, provide for children in care was shameful—the dole and an early grave or the streets. Yesterday, the Prison Reform Trust, of which I am a trustee, produced a report identifying that far too high a proportion of children in care come into contact with the criminal justice system. Will my right hon. Friend the Chancellor and the Prime Minister ensure that policies are implemented right across Government to prevent unnecessary contact between children in care and the criminal justice system, so that those children can have a good future?

George Osborne Portrait Mr Osborne
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My right hon. and learned Friend speaks powerfully. We of course must have a care system that does the very best for children who find themselves in it. As I said in reply to an earlier question, the Queen’s Speech contains measures in that respect. The other thing that we are doing with my right hon. Friend the Lord Chancellor is reforming our prison system so that, yes, people are punished for crimes, but that they also have a chance to rehabilitate themselves. That is one of the social reforms of which I am proudest to be part.

Alan Whitehead Portrait Dr Alan Whitehead (Southampton, Test) (Lab)
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Q14. A Southampton letting agency has recently been banned from trading for three years for not giving tenants their deposits back, using them for other purposes. Letting agencies are almost completely unregulated, and it is pot luck whether Southampton residents actually get a fair deal. Does the Chancellor intend to do anything about that?

George Osborne Portrait Mr Osborne
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We are looking at what we can do to make sure that people who rent have proper consumer protection, including protection from landlords who withhold deposits unreasonably.

Oral Answers to Questions

George Osborne Excerpts
Wednesday 17th June 2015

(9 years, 5 months ago)

Commons Chamber
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Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
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Q1. If he will list his official engagements for Wednesday 17 June.

George Osborne Portrait The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)
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The Prime Minister is in Italy and I have been asked to reply. This morning I had meetings with ministerial colleagues and others, and in addition to my duties in the House I shall have further such meetings later today.

Heidi Alexander Portrait Heidi Alexander
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Under this Government’s leadership, the construction of social rented homes has fallen to a 20-year low, but since 2010 the amount of housing benefit paid to private landlords has risen by £1.5 billion. Does the Chancellor understand the connection, or would he like to come to my next advice surgery so that my constituents can explain it to him?

George Osborne Portrait Mr Osborne
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Of course we are aware that there is an acute housing shortage in London, which is why we need to build more homes, but I can tell the hon. Lady that we built more council housing in the last five years than was built in the entire 13 years of the last Labour Government. I am very happy to come to Lewisham, where we will talk about the fact that today the claimant count is down by 25% over the year and long-term youth unemployment is down 45% in the last year. The economic plan in Lewisham is working.

Nigel Huddleston Portrait Nigel Huddleston (Mid Worcestershire) (Con)
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Q2. Pensions are a really important issue to my constituents, and the Government have delivered on their side of the bargain by giving savers the freedom to access their pensions. Will the Chancellor do all he can to ensure that the industry lives up to its side of the bargain and delivers on those freedoms?

George Osborne Portrait Mr Osborne
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My hon. Friend is absolutely right. The pension freedoms that we introduced in April are delivering the fundamental Conservative principle that people who have worked hard and saved hard all their lives should be trusted with their own money, and 60,000 people have accessed their pension savings. There are clearly concerns, however, that some companies are not doing their part to make those freedoms available. We are investigating how to remove the barriers, and we are now considering a cap on charges. I am asking the Financial Conduct Authority to investigate. People who have worked hard and saved hard deserve a better deal.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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May I begin by congratulating the right hon. Gentleman on his appointment as First Secretary of State?

It was reported this week that Talha Asmal, a 17-year-old from Dewsbury, blew himself up in an ISIL attack that killed 11 people. I am sure the right hon. Gentleman would agree that we need to do everything we can to prevent our young people from travelling to Iraq and Syria, so will he tell the House whether the Government now have an agreement in place with all the airlines to raise alerts when unaccompanied minors travel to known Syrian routes, and whether our police are being notified by the Turkish authorities when British citizens arrive at transit points to Syria?

George Osborne Portrait Mr Osborne
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I thank the right hon. Gentleman for his welcome, and I welcome him to his place. I think his father would have been extremely proud to see him leading for the Labour party today. Speaking for those on this side of the House, we are extremely relieved to see that there is no Benn in the Labour leadership contest but plenty of Bennites.

The right hon. Gentleman raises the very serious situation around ISIL, and I think everyone in this House is shocked that a 17-year-old citizen of our country can become radicalised and, apparently, become a suicide bomber on the other side of the world—of course, we also have had the distressing reports of the families from Bradford. So we are taking a number of steps. First, we want to work with schools, mosques and other community institutions to help prevent the radicalisation—there is a new statutory duty to do that. Secondly, we are working with the airlines, including getting in place those agreements that the right hon. Gentleman talks about and providing training at the borders, to stop people travelling to countries such as Syria and to remove their passports if they attempt to do so. Thirdly—this will be an issue in this Parliament—we also need to make sure that our security and intelligence services have the powers they need to track people who are trying to get back into this country. I look forward to cross-party support on that issue.

Hilary Benn Portrait Hilary Benn
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I am grateful for that reply. I think the House would appreciate an update on the progress of those discussions with the airlines, and I noted that the right hon. Gentleman was not able to respond to the question I asked about the Turkish authorities. This is a very serious matter and we need to know where things have got to.

We know that, for some time, a growing number of young people have been groomed to travel to Syria and Iraq. Last November, the Intelligence and Security Committee criticised the Government for not giving the Prevent programme sufficient priority and concluded that

“counter-radicalisation programmes are not working.”

Why does he think that is?

George Osborne Portrait Mr Osborne
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Frankly, I do not accept all those conclusions, and there has been a disagreement about the Prevent programme. In the past, there was a confusion between the programmes that supported integration and the programmes that tried to prevent radical extremism. As a result, certain organisations that should never have got public money did so under the last Government.

The Prevent programme is doing its work, but we have also passed a very important law in this Parliament that now ensures there is a statutory duty on public authorities such as a schools, universities and the police to develop the Prevent strategy and the counter-radicalisation strategy. Where I think we agree—after all, on an issue such as this let us try to find areas where we agree—is on the need to try to do more in these communities to prevent this radicalisation from taking place in the first place.

Hilary Benn Portrait Hilary Benn
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I assure the right hon. Gentleman that he will, of course, have the full support of Members on the Opposition Benches on measures that are taken to try to deal with this problem. But can he assure us that community-led Prevent programmes are now actually being implemented in places such as Dewsbury and elsewhere, including by providing appropriate training to teachers and other workers in the public sector, as the new public sector duty to which he has just referred comes into force in two weeks’ time?

George Osborne Portrait Mr Osborne
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I can confirm that that training is taking place—indeed, we have provided additional resources. In the spirit of this constructive conversation, may I say that we have an extremism Bill in the Queen’s Speech which goes further in seeking to disrupt groups that are plotting either to commit offences here in this country or to travel abroad and become further radicalised? I hope the Labour party looks seriously at that Bill and offers its support to the Government.

Hilary Benn Portrait Hilary Benn
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It is now clear that right across the middle east and north Africa, the common enemy is ISIL. Does the right hon. Gentleman agree that our strategic objective must be to continue to bring together all of the countries affected, in the region and internationally, to put aside other differences and co-operate to confront ISIL?

George Osborne Portrait Mr Osborne
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I of course completely agree with the right hon. Gentleman on that. Britain plays a leading role in bringing together the various allies that are delivering the impact against ISIL. Indeed, we have had some welcome news of prominent terrorist leaders, not necessarily in ISIL but in other organisations, who have been killed in the past couple of days. If those reports are correct, it is a very welcome step forward in the global fight against terrorism.

The right hon. Gentleman is absolutely right; ultimately, the Iraqi Government and the Syrian people are going to have to find a way to take greater control of their own security. In Iraq, we work with the legitimate Government there. In Syria, we support the moderate Opposition, continuing to support and train them in the tasks that they undertake.

Hilary Benn Portrait Hilary Benn
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Turning now to how we resolve that crisis, which, as the right hon. Gentleman will know, has seen the largest movement of refugees since the end of the second world war, can he tell the House what expectations he has for the new round of talks that UN special envoy Staffan de Mistura is holding in Geneva?

George Osborne Portrait Mr Osborne
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First of all, the right hon. Gentleman is right to talk about the displaced persons, particularly in countries such as Jordan and Turkey, which are bearing an enormous burden. That is why Britain has such a massive aid contribution. Across this House, we can be incredibly proud that the parties in the recent general election stood on a commitment to deliver 0.7% of our national income in development aid. That is not just a humanitarian effort but to make sure that we are able to help in situations such as this. When it comes to burden sharing across the region, of course we want to help, but we must be realistic. We cannot take large numbers of Syrian refugees into our country.

Hilary Benn Portrait Hilary Benn
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Finally, as more and more people gather in Libya to try to cross the Mediterranean, HMS Bulwark is doing an extraordinary job in rescuing frightened people. But we learned yesterday that its deployment is under active review. Having made a grave error last October in withdrawing support from the Mare Nostrum search and rescue operations, will the right hon. Gentleman assure the House that the Government will continue to save the lives of those in peril on that sea?

George Osborne Portrait Mr Osborne
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Of course I can give the right hon. Gentleman the assurance that we will continue to play our full part in the search and rescue operation in the Mediterranean. As I understand it, essential maintenance needs to be carried out on HMS Bulwark, which is clearly an operational issue, but no one should doubt Britain’s determination to play its role in helping with this situation.

May I end on this point? Taking people out of the water and rescuing them is essential—we are a humanitarian nation and we need to deal with those issues—but, in the end, we must break the link that enables someone to get on a boat and then claim asylum in Europe and spend the rest of their lives on the European continent. That is what draws these people. They are aiming for a better life, but circumventing proper immigration controls on the European continent. We should work across Europe to break that link. I look forward to the right hon. Gentleman’s role in helping us do that.

Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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Businesses in Kent need capable school leavers and graduates to employ. Will my right hon. Friend explain what the Government are doing to ensure that pupils study the most important academic subjects, such as maths, which employers value?

George Osborne Portrait Mr Osborne
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I completely agree with my hon. Friend. My right hon. Friend the Education Secretary set out really important education reforms yesterday. The introduction of the EBacc, which will increase rigour in our schools, will ensure that children are learning the essential subjects they need to get great jobs. Of course, today—this has not been much talked about yet, but perhaps will be later in this Session—we should reflect on the fact that unemployment is down again in our country, employment is up, and long-term unemployment is down. For the first time, wages are growing faster than since the great recession. That shows that our economic plan is working.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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The Iraq war a decade ago and its aftermath have been an unmitigated disaster. The Chilcot inquiry into the causes of that war has now been running for six years at a cost of £10 million. Is it true that the Chilcot report has been delayed until next year?

George Osborne Portrait Mr Osborne
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The Chilcot inquiry is completely independent of Government, and we do not determine when it publishes its conclusions. I agree with the hon. Gentleman that it has been a long time coming, and people are running out of patience, as they want to see that report. I make a broader observation, which is that there was a cross-party alliance between the Scottish nationalists and the Conservative party when we called for that inquiry to be set up earlier than it actually was. If it had been, we would have the conclusions now.

Angus Robertson Portrait Angus Robertson
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It is worth remembering that the Chancellor of the Exchequer and the Prime Minister both voted for the war that we were led into by the then Labour Government. Does the Chancellor feel that he has no moral or political responsibility to get to the bottom of the reasons why we went into this catastrophic war in the first place, and what is he going to do about it?

George Osborne Portrait Mr Osborne
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That responsibility was fulfilled when we voted to create an independent inquiry. We want to see the results of that independent inquiry. Those involved in Chilcot will have heard the view of the House of Commons today, and indeed the public concern, about how long the inquiry is taking, but ultimately it is an independent inquiry. If it was not independent, people would question its motives and the basis on which it had been set up. It is independent, but it should get on with it.

Angela Watkinson Portrait Dame Angela Watkinson (Hornchurch and Upminster) (Con)
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The tunnel boring part of the Crossrail project is now completed. The route will run through my constituency at Harold Wood. Will the Chancellor join me in congratulating everybody who has been involved in this most amazing feat of engineering, of which this country must be truly proud?

George Osborne Portrait Mr Osborne
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My hon. Friend rightly draws attention to one of the great engineering marvels of the world—the fantastic Crossrail tunnel that has been built under one of the oldest capital cities on the planet. [Interruption.] Hon. Members ask, “How much did it cost?” It did cost money, but I tell you what: this Government are investing in the infrastructure to provide the jobs in the future, and if we were not making the savings in the Government budget elsewhere, we would not be able to provide for our children. [Interruption.]

John Bercow Portrait Mr Speaker
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Mr Campbell, it is all that hot curry; it is getting to you. Calm yourself, man! Calm down! A bit of yoga would help.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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Q3. It is both sad and disturbing that the number of reported rapes in Greater London has risen by 68% in the last 10 years. Sexual crime is up by 35% in the last year. Will the Chancellor commit the extra resources to the police to ensure that they catch and jail the perpetrators, and that they continue to support organisations working with women in the most sensitive manner?

George Osborne Portrait Mr Osborne
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Of course we continue to provide that support. Indeed we have, through the operational independence of the Metropolitan police, seen the police focusing more on these heinous crimes. One of the better pieces of news is that there has been increased reporting as well, and women coming forward who have been victims of this horrific crime, but I am always prepared to look at extra requests for resources if there is more we can do to help.

Lord Harrington of Watford Portrait Richard Harrington (Watford) (Con)
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Q4. In my constituency, in Watford, in one year alone in the last Parliament, the number of apprenticeships doubled. They were among more than 2 million apprenticeship starts in the country as a whole, and clearly very beneficial to businesses and young people alike. Would my right hon. Friend confirm that a further growth in apprenticeships is an important priority for this Government?

George Osborne Portrait Mr Osborne
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I can confirm that 3 million apprenticeships is the objective of this Government in this Parliament, building on our success of providing 2 million apprenticeships in the last Parliament. I think the whole House will want to congratulate my hon. Friend on becoming the apprenticeships adviser to the Prime Minister. He has a very important role to play, because there are many great companies who run great apprenticeship programmes, but not enough companies do have apprenticeship programmes. I hope they will receive a knock on the door from my hon. Friend.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
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Q5. Will the Chancellor confirm that the waste water from fracking will be properly treated, so that it is safe to drink again?

George Osborne Portrait Mr Osborne
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We will have the proper environmental standards around the exploration of shale gas, but I think for this country to turn its back on one of these great natural resources, which other countries are using, would be to condemn our country to higher energy bills and not as many jobs. Frankly, I do not want to be part of a generation that says, “All the economic activity was happening somewhere else in the world, and was not happening in our country, and was not happening on our continent.” So we should get on with the safe, environmentally protected exploration of our shale gas resources.

David Rutley Portrait David Rutley (Macclesfield) (Con)
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Q6. In recent months, Jodrell Bank successfully secured the future of the globally significant Square Kilometre Array telescope project at its site, and over £12 million in heritage lottery funding to highlight its unique science heritage. Does my right hon. Friend agree that this is further evidence of the importance of science in his compelling vision of a northern powerhouse?

George Osborne Portrait Mr Osborne
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My hon. Friend is right to draw attention to the success that Manchester University and Jodrell Bank have had in securing the international headquarters of the Square Kilometre Array experiment. I visited Jodrell Bank in the middle of the election campaign—I dropped in to congratulate them on the achievement, which was achieved during the purdah period but under instructions issued by the previous Government. It is the world’s largest science experiment. It is an incredible collaboration across nations, and I am extremely proud that its headquarters are in the northern powerhouse.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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Today sees a mass lobby here in Westminster of people who are demanding urgent action on climate change. Since coal is the most damaging of the fossil fuels, does the Chancellor agree that as well as phasing out coal, we in this House have a responsibility to divest our parliamentary pension fund from fossil fuels, as has been done in Norway very recently?

George Osborne Portrait Mr Osborne
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It is way above my pay grade to interfere with the parliamentary trustees of the pension fund here, and I leave the decisions on investments to them. I agree with the hon. Lady that the lobby of Parliament today is important and the Paris talks at the end of the year are a real opportunity to get a global commitment to binding standards and carbon targets. Britain will play its full part. What we want to achieve is dealing with those greenhouse gas emissions and meeting our international obligations on climate change, but doing so in the cheapest way possible for the consumers of electricity here in Britain.

Johnny Mercer Portrait Johnny Mercer (Plymouth, Moor View) (Con)
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Q7. After years of undeserved neglect my city, Plymouth, is beginning to enjoy some infrastructure investment and realise its brilliant potential. We can see that from today’s jobs figures, which show an unemployment fall of almost half since this Chancellor came in. A most important step in that is our Hitachi trains deal. Will he please clarify where we are today with that?

George Osborne Portrait Mr Osborne
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My hon. Friend is already doing a great job in speaking up for the city of Plymouth, alongside my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile), and as a result we have major investments in transport in the south-west, such as the upgrade of the A303 and the new trains on the Great Western line down to the south-west. I can confirm that we are in active discussions to provide those new trains and we hope to have further good news later this summer.

Jess Phillips Portrait Jess Phillips (Birmingham, Yardley) (Lab)
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Q8. According to the Women’s Aid annual survey last year, on one single day there were 132 women aged 18 to 20 living in refuge after being attacked, assaulted and in some cases raped. Will the Chancellor guarantee for me and those women that those living in supported accommodation like refuge will not be included in his Government’s plans to remove housing benefit from those aged 18 to 21, or will he see 132 women who have been abused return to their violent partners every day?

George Osborne Portrait Mr Osborne
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We made it very clear when we set out our proposals on housing benefit that we would protect particularly vulnerable people, such as those that the hon. Lady refers to, and I welcome her to the House.

I would make a broader argument about welfare reform. This country faces a very simple choice. We have 1% of the world’s population and 4% of its GDP, but we undertake 7% of the world’s welfare spending. We can either carry on on a completely unsustainable path or we can continue to reform welfare so that work pays and we give a fair deal to those on welfare and a fail deal to the taxpayers of this country who pay for it.

Lord Tyrie Portrait Mr Andrew Tyrie (Chichester) (Con)
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Does the Chancellor agree that today’s elections to chairmanships of Select Committees are a great success story for Parliament as a whole? [Interruption.] Particularly for me—[Interruption.] I am very grateful for that further gesture of support from the whole House of Commons. Since those elections are a success, and particularly if the Prime Minister is going to miss a few Wednesdays, will my right hon. Friend suggest to the Prime Minister that he appear before the Liaison Committee more than three times a year?

George Osborne Portrait Mr Osborne
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I will certainly pass on the request. My hon. Friend is right to draw attention to the success of these elections, which did not exist before the Conservatives came into office. I am not sure that his own election is the best possible example, as I think he is unelected and unopposed in his own election.

John Bercow Portrait Mr Speaker
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Well, elected unopposed, anyway. I think that is what the right hon. Gentleman meant.

Stephen Doughty Portrait Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
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Q9. I, too, want to add my tribute to CAFOD, Christian Aid and the thousands of others who are outside today making the case for a tough deal on climate change. Will the Chancellor explain what the Government are doing diplomatically to support a tough global deal and to ensure that there is a level field for carbon-efficient companies in the UK, such as Celsa Steel UK in my constituency, so that global emissions are not simply increased by being offshored to places such as China?

George Osborne Portrait Mr Osborne
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That, of course, is why a global deal is so important. We are actively engaged in these negotiations; indeed, the Prime Minister was speaking to the French President about the matter only last week. We are absolutely determined that Britain should play a leading role along with our colleagues in Europe in delivering that binding global target so that individual parts of the world cannot opt out.

Henry Smith Portrait Henry Smith (Crawley) (Con)
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Q10. Employment in Crawley is at a record high level, with companies such as Creative Pod having created extra jobs. Will my right hon. Friend tell us what additional policies the Government can introduce to ensure that small and medium-sized companies can flourish further still?

George Osborne Portrait Mr Osborne
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Small and medium-sized businesses, of which around three quarters of a million have been created in the past five years, are the engine of growth in our economy, and they are one of the reasons why the claimant count in my hon. Friend’s constituency is down by almost two thirds. Even more encouragingly, the long-term youth claimant count is today down by 75%. We will go on doing things such as providing the employment allowance, which helps small businesses to employ more people. Of course, what would be disastrous would be to abandon the economic plan and borrow and spend more, because the worst thing for a small business is economic instability that puts them out of business.

Judith Cummins Portrait Judith Cummins (Bradford South) (Lab)
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The Chancellor will be aware of the appalling incident last Thursday at Dixons Kings Academy in my constituency, where a pupil is accused of stabbing his teacher, Mr Vincent Uzomah. I am sure that the whole House will wish to join me in expressing its shock at this horrifying incident, and in wishing Mr Uzomah a swift and full recovery. Will the Chancellor tell the House what steps he is taking to tackle knife crime in our schools?

George Osborne Portrait Mr Osborne
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The hon. Lady speaks for the whole House in sending our sympathies to Mr Uzomah and to the pupils and staff at the school. Our hearts go out to them. The leadership in the school dealt with the situation incredibly well, and I know my right hon. Friend the Education Secretary has spoken to the headteacher. What we have done is to give teachers powers to search pupils’ bags and the like, but if there is more that we can do as we learn the lessons of this incident, of course we will.

Richard Drax Portrait Richard Drax (South Dorset) (Con)
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Q11. Figures released today show that the number of jobseeker’s allowance claimants in my constituency has dropped over the past five years by nearly 60%. May I thank my right hon. Friend for his recent letter, and may I ask him to agree that further rail investment to Weymouth and Portland will increase jobs and prosperity in my constituency?

George Osborne Portrait Mr Osborne
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My hon. Friend has raised with me the case of the particularly slow rail service to Weymouth and Portland, and we will look into it. We are making a massive commitment to the south-west—a £7 billion programme, which is the biggest ever commitment of infrastructure to the south-west—and I will look to see what we can do to improve the rail service for his constituents so that we properly connect up the south-west.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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The Chancellor will be aware that under the coalition, £219 million was allocated to rebuilding St Helier hospital. Will he restate the commitment to that funding so that we can save St Helier?

George Osborne Portrait Mr Osborne
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We did commit to that hospital project, and provided that it continues to represent value for money, which I am pretty clear that it does, we will go on providing that support. What we have done is to commit to the Simon Stevens plan for the national health service—an additional £8 billion of NHS spending —which we can only do if we have our public finances in better order and we are growing our economy, which is precisely what we are doing.

Amanda Solloway Portrait Amanda Solloway (Derby North) (Con)
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Q12. Since my right hon. Friend became Chancellor, unemployment in Derby has fallen by 64%, and our city recently topped a list of 138 cities, towns and counties as the fastest-growing economy in the UK. This will come as no surprise to the Chancellor, who recently visited my constituency and spoke about the midlands being Britain’s engine for growth. Does he agree that we should do even more to support small business across the midlands to create more jobs and better skills, and boost our economy even further?

George Osborne Portrait Mr Osborne
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I very much enjoyed visiting the engineering firm Garrandale in my hon. Friend’s constituency a couple of weeks ago. It is an outstanding example of a successful medium-sized business growing in the east midlands and exporting around the world, and we want to see more of that in our country. That is why we have a policy that delivers economic security for our nation in uncertain times, more jobs, more infrastructure, and more support for small businesses—all so that we can back the working people of this country.

Paula Sherriff Portrait Paula Sherriff (Dewsbury) (Lab)
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The right hon. Gentleman referred to Talha Asmal from my constituency, who is alleged to have become the UK’s youngest-ever suicide bomber. Will he agree to convene a meeting between myself and Home Office Ministers to discuss a review of counter-terror policy, particularly with reference to tackling radicalisation?

George Osborne Portrait Mr Osborne
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Home Office Ministers will be very happy to meet the hon. Lady and her constituents. Of course, we want to work together to try to prevent other tragic cases like this one; and of course, let us not forget the victims of the suicide bomb as well as the suicide bomber. That is going to be a great generational task for us. It is clear that Islamic extremism and the radicalisation of our young people is not going to be something that we solve in space of a week or a month, or even, potentially, in this Parliament. We need to work across party divides. We also need to work with all the different public services to make sure that we prevent these young people from thinking that somehow their life, or their death, is better on the other side of the world.

Alan Mak Portrait Alan Mak (Havant) (Con)
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Q13. Today’s employment figures are good news for my constituency of Havant, where the number of people out of work is down by 895. During the election, the Chancellor set out his plans for the south coast. Will he update the House on what steps he is taking to deliver on those commitments, which will deliver aspiration and growth for my region? [Interruption.]

George Osborne Portrait Mr Osborne
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First, I very much welcome my hon. Friend to the House. Is it not extraordinary that after 32 minutes of this session there has been not a single question from Labour on jobs, and when an hon. Member stands up to talk about the good news in his constituency, he gets shouted down by the Opposition? The truth is that the long-term youth claimant count in his constituency is down by 50%. We are going to go on investing in the south coast. At the general election, Labour wanted to cancel the improvements to the A27; that spoke volumes for its long-term vision for our country. We are going to go on investing in that vital road on the south coast and the other key infrastructure we need—road and rail and broadband—across the south of England.

Jim Dowd Portrait Jim Dowd (Lewisham West and Penge) (Lab)
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Q14. Is the First Secretary aware of the concern among authors that the calculation of public lending rights is being distorted by the increasing number of public libraries being run by volunteers because of the huge cuts in local council spending? Will he ask the Culture Secretary, who is extremely knowledgeable in these matters, to ensure that this is rectified and that writers can reasonably expect the rewards to which they are entitled?

George Osborne Portrait Mr Osborne
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We have been able to address some of the concerns about lending rights in the past couple of years. I am very happy to look specifically at the issue the hon. Gentleman raises to see if there is more we can do.

Gerald Howarth Portrait Sir Gerald Howarth (Aldershot) (Con)
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Today’s unemployment figures provide further compelling evidence of the strength of the United Kingdom’s economic recovery, thanks in large measure to the long-term economic plan for this country. But given the strength of that recovery, may I lodge an appeal to my right hon. Friend that we now commit to spending 2% of GDP on our defences, both to plug the military capability gaps we have had to sustain and, in these troubled times, to assure our principal ally, the United States of America, that so long as we have a Conservative Government, defence of the realm will be the No. 1 priority of this Government?

George Osborne Portrait Mr Osborne
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First, I welcome my hon. Friend’s support for the economic plan that is delivering those jobs in Aldershot. Of course, the military and defence industries are an incredibly important employer in his constituency. He is absolutely right that we cannot have strong defence without a strong economy, and he is right to link the two. We are spending 2% of our GDP on defence. We have made a big commitment to the future equipment programme for defence, and we will set out our future plans at the spending review.

Since my hon. Friend raises a military matter, I will, if I may, Mr Speaker, at the end of this session, say that this is the 75th anniversary of the sinking of HMT Lancastria. It was the largest loss of British lives at sea in the history of this maritime nation. Some of the survivors are still alive today, and many of course mourn those who died. It was kept secret at the time for reasons of wartime secrecy. It is appropriate today in this House of Commons to remember all those who died, those who survived and the families who still mourn them.